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Re: BofA halts foreclosures in 50 states

Originally Posted by liblady

so you believe the banks wanted people to default on their loans....and on the flip side, aren't the people who took out those loans responsible as well? your reasoning is faulty here. banks DON"T WANT those homes on their books. they would rather people be able to pay their mortgages.

Yes, I believe that the banks were looking to be predatory by not using sound judgment in giving out the loans to those that couldn't afford it. The banks pushed for relaxed lending regulations, which normally would have prevented the sub-prime mess to begin with, in order to make extra money. The banks have the homes on the books with the loans to begin with and the homes being foreclosed on just means that the banks can make more money from a second sale of it.

Re: BofA halts foreclosures in 50 states

Originally Posted by The_Patriot

Yes, I believe that the banks were looking to be predatory by not using sound judgment in giving out the loans to those that couldn't afford it. The banks pushed for relaxed lending regulations, which normally would have prevented the sub-prime mess to begin with, in order to make extra money. The banks have the homes on the books with the loans to begin with and the homes being foreclosed on just means that the banks can make more money from a second sale of it.

do you understand what you just wrote? a bank makes a 300k loan to someone who can't afford it, with very little down. they make a little in interest, then have to foreclose. in the meanitme, property values are halved. so now they can sell it for 150k........WHOA! what genius!

Re: BofA halts foreclosures in 50 states

Originally Posted by liblady

do you understand what you just wrote? a bank makes a 300k loan to someone who can't afford it, with very little down. they make a little in interest, then have to foreclose. in the meanitme, property values are halved. so now they can sell it for 150k........WHOA! what genius!

i'm not sure you understand how these things work.

Oh I understand how these things work, but do you? I ask because you're missing two of the four things I said as my reasons for scrapping the banks and starting over.

That's why the banks got the bailouts after getting the money for selling the loans as an investment. Once they got the bailout, any money from the sale of a home would be pure profit. Besides it's not like the banks actually invested money into this since they can create money out of thin air on a computer based upon the down payment. The down payment goes onto their books as part of their reserves and 90% of the value of the reserve can be created as new money. Don't you just love fractional reserve banking?

Re: BofA halts foreclosures in 50 states

Originally Posted by The_Patriot

Yes, I believe that the banks were looking to be predatory by not using sound judgment in giving out the loans to those that couldn't afford it. The banks pushed for relaxed lending regulations, which normally would have prevented the sub-prime mess to begin with, in order to make extra money. The banks have the homes on the books with the loans to begin with and the homes being foreclosed on just means that the banks can make more money from a second sale of it.

OK, can't go with you there.

If someone buys a house for $500K, the bank has to cut that check to the previous owner/builder for $500K. If they only collect a year's worth of payments, then have to turn around and sell it for $250K, then the bank has lost money.

What's happening is the bank is desperate to collect what it can to SERVICE ITS OWN DEBTS. However, it is still in the best interest of the bank to receive payments, not foreclose. I'm certain, as BoA has stated, it is doing everything it can to collect house payments before they decide to foreclose.

This whole "process" argument is just a sham to slow down foreclosures and make the housing picture look slightly better prior to an election. Come December, it will be "Foreclose away!!", and the Dems will blame it on the new Republican Congress heading into 2012.

Re: BofA halts foreclosures in 50 states

Originally Posted by The_Patriot

Oh I understand how these things work, but do you? I ask because you're missing two of the four things I said as my reasons for scrapping the banks and starting over.

That's why the banks got the bailouts after getting the money for selling the loans as an investment. Once they got the bailout, any money from the sale of a home would be pure profit. Besides it's not like the banks actually invested money into this since they can create money out of thin air on a computer based upon the down payment. The down payment goes onto their books as part of their reserves and 90% of the value of the reserve can be created as new money. Don't you just love fractional reserve banking?

oh, so now you're saying the banks knew the collapse would happen and they would be bailed out. again....genius!

Re: BofA halts foreclosures in 50 states

Originally Posted by The_Patriot

Oh I understand how these things work, but do you? I ask because you're missing two of the four things I said as my reasons for scrapping the banks and starting over.

That's why the banks got the bailouts after getting the money for selling the loans as an investment. Once they got the bailout, any money from the sale of a home would be pure profit. Besides it's not like the banks actually invested money into this since they can create money out of thin air on a computer based upon the down payment. The down payment goes onto their books as part of their reserves and 90% of the value of the reserve can be created as new money. Don't you just love fractional reserve banking?

Good point on the bailouts. Not sure just how much the banks got, but if they were made whole on the majority of their bad loans, then I guess, there could be some residual profit from the second sale.